Oracle layoffs: Cuts 10% of workforce to invest in AI

Oracle has begun a new round of layoffs, reducing its workforce in several key regions. The job cuts, which affect various departments, are part of a larger restructuring effort to focus on artificial intelligence (AI). These changes come as Oracle posts strong financial results, underlining a strategic pivot within the company to prioritise high-growth areas.

A strategic restructuring

The recent layoffs impacted an estimated 10% of Oracle's staff in India, a major hub for its global operations. The company has also eliminated roles in the United States, Israel, and Canada. Most of the cuts are in the Oracle Cloud Infrastructure (OCI) division, with roles in enterprise engineering, Fusion ERP, and AI/ML project management also affected. A significant number of the job eliminations in the US occurred in the Seattle area, a former core for Oracle's cloud operations.

Oracle's financial reports show the company is doing well. In fiscal year 2025, Oracle saw total revenues increase by 8% to USD 57.4 billion. Its cloud business remains a top performer, with cloud revenue up 27% to USD 6.7 billion. Despite these strong numbers, Oracle executives have repeatedly stated that scaling data centres and cloud capacity are critical to future revenue growth. The company has publicly confirmed that "workforce changes" are part of "strategic adjustments" to manage the high costs of AI infrastructure investments.

This move follows a broader trend in the tech industry. Many large tech companies are cutting jobs in some areas to free up capital for AI development. For example, Microsoft cut around 15,000 jobs earlier this year, and Amazon laid off hundreds of employees from its AWS cloud unit. The decision to cut jobs while the company is financially stable shows that Oracle is reallocating resources to prepare for a future driven by AI. It also highlights a growing industry-wide shift where companies are streamlining their operations to fund next-generation technology.

Impact on employees

The layoffs caught many long-term employees off guard. Many people took to social media to share their experiences of being suddenly laid off despite years of service. Oracle has not disclosed the total number of employees affected worldwide. As of May 2025, Oracle had a global workforce of 162,000.

While job cuts have been happening in certain areas, Oracle continues to hire in others, particularly in its new headquarters in Nashville, Tennessee. This suggests that the company is not just downsizing but is actively reshaping its talent pool to match its new business priorities.